Northern Nevada
By Gary Tremaine, Dickson Commercial Group
The retail market in Washoe County continued to have a strong quarter, with over $93,653,731 in transaction volume. Q4 was highlighted with one large sale of $13,750,000, two sales over $9 million and an average sale price of $3,746,149. There is a continued interest in northern Nevada by both regional and national tenants, helping to lower or keep vacancy rates stable. In the fourth quarter, two lease transactions over 50,000 sq. ft took place: the leasing of Fitness Connection in the Kietzke Center next to Sportsmans Warehouse and Autozone in The Iron Horse Shopping Center. These transactions collectively accounted for 101,957 square feet of retail space.
As geographic expansion in the Reno-Tahoe region becomes limited, new large ground up developments are becoming constricted. There will be more of a focus in the market on infill projects and expansion of existing developments. The University Crossing Shopping Center at the corner of North Virginia St and Maple St is a notable addition to the Reno retail market.
Development groups associated with both Costco and Trader Joe’s have been active in land acquisitions in South Meadows and Sparks.
Southern Nevada
By Giovanna Abraham, Avison Young
The Las Vegas retail landscape saw notable declines in vacancy rates, marking historical lows. Q4 2023 revealed a total vacancy of 5.5 percent, with direct space comprising 5.3 percent and sublet space a marginal 0.2 percent. Despite this positive trend, Q4 2023 still recorded over 700,000 square feet under construction which could hint at potential future increases in vacancies as ongoing retail development projects near completion, augmenting the market’s inventory. A standout feature of the market’s performance is the upward trajectory of asking rents. Starting at $31.42 per square foot in the initial quarter of 2023, asking rents closed Q4 at $33.02, marking a significant growth of 5.09 percent. The post-pandemic period has witnessed sustained upward momentum, with a notable 28.63 percent growth in asking rents from Q1 2020 to Q4 2023. This robust trend underscores the resilient demand for retail space, further evidenced by sustained positive absorption and low vacancy rates.
In comparison to other prominent retail markets nationwide, Las Vegas maintains its position among the top five markets for asking rent growth. With a notable ascent, the market achieved a growth rate of 6.7 percent in asking rents from Q4 2022 to Q4 2023. This discernible increase highlights Las Vegas’s resilient standing and sustained upward trajectory in the dynamic realm of retail real estate.
